The MSCI Asia Pacific Index slid 0.2 percent to 148.41 as
of 7:29 p.m in Hong Kong. Two weeks of increases pushed the
price-earnings ratio on the measure to 13.7 yesterday, the
highest since December, as concern eased about conflicts in
Iraq, Israel and Ukraine. The Standard & Poor’s 500 Index
climbed 0.5 percent yesterday to a record, briefly topping the
2,000 level for the first time.

“Gravity tends to pull on the markets after they’ve had a
strong directional move,” Ric Spooner, Sydney-based chief
market analyst at CMC Markets, said in a phone interview. “The
market needs good news to sustain it and in the absence of this,
tends to drift down. Valuations are fairly full.”

Data yesterday showed the pace of new-home sales in the
U.S. fell to the slowest in four months in July. Housing has
advanced in fits and starts this year, buffeted by tight credit
and slow wage growth. Federal Reserve Chair Janet Yellen
signaled last week that while slack remains in the U.S. labor
market, interest rates could be raised sooner than expected.

SoftBank, the Japanese wireless carrier led by Masayoshi
Son, dropped 1.8 percent to 7,261 yen in Tokyo after rallying
for six straight days.

Guangzhou R&F slumped 7.2 percent to HK$10.04 for its
biggest drop in more than a year. The company cut its full-year
contracted sales target to 60 billion yuan ($9.8 billion) from
70 billion yuan.

China State Construction International Holdings Ltd.
declined 1.7 percent to HK$12.70 after Morgan Stanley rated the
shares underweight in new coverage at the brokerage.

Among stocks that rose, China Modern Dairy rallied 4.6
percent to HK$3.63. The company posted first-half net income of
523.2 million yuan, more than tripling from a year earlier.

DeNA Co. climbed 3.7 percent to 1,324 yen in Tokyo after
its Kiritani-san x Bike Run game jumped to the top ranking of
free Apple Inc. iOS application downloads in Japan.